California lawmakers gaveled in yesterday for the 2024 legislative session with plenty to do, but scant cash to go around — and protesters supporting a ceasefire in Gaza prompting a quick adjournment.

Health care, housing, schools and environmental programs will jockey for lawmakers’ attention — and state money — as they face the prospect of plugging a $68 billion hole in the budget for 2024-25. Legislative budget analysts have identified $10 billion in cuts in one-time spending and dipping into $24 billion in reserves.

Assemblymember Jesse Gabriel, an Encino Democrat who just took over as chairperson of the budget committee, said the deficit is likely to impact everything the Legislature does this year.

“It’s going to require us to make some tough choices. But that’s what government is about — making tough choices,” he told CalMatters. “Our top priority is going to be to protect vulnerable communities.”

That includes social services and classroom funding, as well as protecting recent investments in climate and homelessness programs, he said.

Senate Budget Chairperson Nancy Skinner, an Oakland Democrat, said her goal is to avoid cuts that “will create harm for people,” and instead modify new programs that haven’t started yet. Delaying planned new spending was one of the strategies the state employed to close a more than $30 billion deficit last year; it’s unclear whether that will be enough this year.

Gov. Gavin Newsom will help frame the debate when he unveils his initial budget proposal next week. He rebuffed a Dec. 14 call from Assembly Republicans to call a special session focused on the budget deficit, or to take further actions other than some spending freezes. His Department of Finance spokesperson H.D. Palmer declined to comment.

Outgoing Senate President Pro Tem Toni Atkins, a San Diego Democrat, said she expects Newsom’s administration to both delay programs and propose cuts, and has told colleagues not to expect any new spending.

“That is pretty much the mood of the moment,” she said. “Be prepared for the worst, and understand we’re not going to be talking about any new expenditures, and we may have to really slow down some rolling out of resources for programs.”

The deficit is partly a consequence of California’s progressive tax system that relies heavily on the incomes and capital gains of very wealthy residents — producing revenues that infamously seesaw alongside the booms and busts of the stock market.

When the incomes of the rich soared amid low interest rates during the pandemic, taxes on their earnings and federal COVID-19 aid filled the state’s coffers with a nearly $100 billion surplus. Then interest rate hikes slowed down the housing market and investments in the tech sector. That, combined with delayed tax filings caused by last year’s winter storms, has prompted revenues now to come in short.

This year’s projection by the nonpartisan Legislative Analyst’s Office is the state’s largest deficit to date, though not by its percentage of the overall budget. And the state is in better shape to handle it than during the Great Recession, having put billions of dollars into reserves since then.

The situation is likely to prompt some discussion of whether to stabilize the state’s revenue sources. In the past, proposals to bring in revenue through taxing business services have been seen as too politically unpopular.

“We need structural tax reform,” Sen. Scott Wiener, a San Francisco Democrat, wrote on social media Tuesday. “We need to broaden out our tax base to make it more stable.”

Wiener, through a spokesperson, declined to comment on whether he will introduce legislation to do so.

Such a proposal, Atkins said, would be unlikely to go anywhere, “even though we all think there should be a different” system. She said the state’s creation of a rainy day fund after the Great Recession will be enough to “manage through this deficit,” leaving lawmakers less incentive to back any new taxes or changes to the tax structure.

“I’m not optimistic that it gets done,” she said. “If California doesn’t withstand this crisis, then I would say there’s the leverage to do something.”

Gabriel said that he would consider all the options for addressing the shortfall, although he hadn’t heard any serious conversations around raising taxes.

“Certainly, that’s something that some people may propose and want to talk about,” he said. “But I think the first step here is to try to understand how we can address the current shortfall with reserves and with some of the other options we have at our disposal.”

Assembly Speaker Robert Rivas chats with Assemblymember Reggie Jones-Sawyer on the first day of session at the state Capitol on Jan. 3, 2024. Photo by Fred Greaves for CalMatters

Budget cuts are also likely to pit parts of the Legislature’s Democratic supermajority — and the interest groups they represent that rely on state funding — against each other. For some Republicans, it’s already an opportunity to float cuts to programs they oppose.

Assemblymember Bill Essayli, a Riverside Republican, introduced a bill yesterday to roll back funding for California’s expansion of Medi-Cal to low-income undocumented immigrants, citing the deficit.

The expansion went into its final phase (immigrants aged 26-49) this month at a cost of $1.2 billion this year, estimated to grow to nearly $3 billion in the upcoming fiscal year. California years ago expanded Medi-Cal coverage for undocumented children and last year did so for seniors; Essayli’s bill would cut “all taxpayer funding” for the program’s coverage of undocumented immigrants. Newsom, though, told reporters in southern California that he’s “committed” to the expansion.

Health spending is also expected to rise with the introduction of phased minimum wage hikes for health care workers, prompting the state to pick up some of the increases for workers in the University of California and state hospital systems, as well as increased costs in public health care.

But there’s far more than the budget before lawmakers. Some other pressing issues:

Israel-Hamas war: While the state’s role is limited, some lawmakers have either willingly stepped into the conversation, while others face pressure from constituents to address their concerns, whether that’s advocating for the release of hostages still held by Hamas, or calling for a ceasefire. Shortly after the Assembly gaveled in, dozens of protesters from Jewish Voice for Peace and IfNotNow began singing in support of a ceasefire in Gaza.

Calling the action “out of order,” lawmakers quickly called a recess, emptied the chamber and adjourned soon after until Thursday. Outside in the rotunda, more than 100 protesters chanted, citing a national activist group’s calculation that California taxpayers contribute about $600 million to U.S. military aid to Israel, and calling for the money to be put toward state priorities instead.

Speaking to reporters, Wiener and Gabriel, co-chairpersons of the Legislative Jewish Caucus, said they support the right to demonstrate but criticized the protesters for disrupting the session. The caucus has called for bills to address what they say is a rise in anti-Semitism in schools and universities after the Oct. 7 Hamas attack on Israel.

Protesters call for a ceasefire in Gaza at the state Capitol on Jan. 3, 2024. Photo by Fred Greaves for CalMatters

Retail theft: Assembymember Carlos Villapudua, a Stockton Democrat, introduced a referendum to revise the much-debated Proposition 47. He said his proposal would fix “unintended outcomes” of the measure approved by voters in 2014. Specifically, it would change the $950 threshold for petty theft and shoplifting to be charged as a felony, which he said has “fueled a market of petty and repeat offenses with zero-to-low accountability.” Assembly Speaker Robert Rivas already created a special committee to look into retail theft, but the Legislature has rejected GOP moves to repeal Prop. 47 altogether. Politicians in recent years have seized on rising voter concerns of theft, though late last year a national retail group retracted an oft-cited claim about how much stores had lost from “organized” shoplifting.

Reparations: Last year, a state task force released a final report tallying up for the Legislature what it would take to offer reparations to Black Californians descended from enslaved people. Lawmakers are now expected to introduce bills to make those recommendations actually happen. Sen. Steven Bradford, an Inglewood Democrat, already filed one last year to create a new state agency to administer reparations. But it won’t be an easy road ahead, despite the backing of Democratic lawmakers and Newsom to create the task force. The report put an $800 billion price tag — two and a half times this year’s state budget — on compensating eligible Black residents for the enduring harms of discrimination in areas like policing and housing. So far most lawmakers and Newsom have demurred on supporting the recommendations.

Artificial intelligence: More proposals are expected to address rising concerns about artificial intelligence and its applications, including in campaigns and elections. Legislators will consider bills to create a new regulatory framework for AI systems and to give entertainment artists some authority to nullify contracts over the use of their “digital replicas.” Yesterday, Chula Vista Democratic Sen. Steve Padilla introduced a bill to “establish safety, privacy, and nondiscrimination standards” for any AI companies with state contracts. A law passed last year requires the state’s department of technology to create a “comprehensive inventory” of “high-risk automated decision systems” by September.

Wildfire insurance: Legislators failed to fix the home insurance market before adjourning last year’s session, after several major insurance companies decided to stop selling new homeowner policies. The state’s Department of Insurance is working on new regulations, but such rules may not be enacted until 2026.

Maternity wards: Citing CalMatters’ reporting about the alarming rate at which California maternity wards are shutting down, Assemblymember Akilah Weber, a La Mesa Democrat, is introducing a measure for additional state review, including how a closure would impact the nearby community.

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CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

Katherine “Kathy” Diane Sharpe
May 27, 1952 - November 24, 2023

Katherine “Kathy” Diane Sharpe, a lifelong resident of Eureka, was born on May 27, 1952. She was the eldest daughter of James Sharpe Jr. and Alta Bee Sharpe. Her life was a testament to her unwavering dedication to her family and career.

Kathy was a 1970 Eureka High graduate, and she cherished her years playing clarinet in the band, with activities like football games, parades and musicals.

In 1973, Kathy began a distinguished career in business management at the Mad River Ranger District, a role she cherished and excelled in until her retirement in 2012. Her commitment, expertise, and leadership within the organization left an indelible mark, earning her the respect and admiration of her colleagues.

Beyond her professional achievements, Kathy was a beloved family member. She is survived by her siblings: Gregory Sharpe, Nancy (Chris) LaMont, Carol (Bob) Stewart, and Gary Sharpe. Kathy had a special place in her heart for her family, and her love for them was unwavering. She is also survived by numerous nieces, nephews, great-nieces, and great-nephews who will miss her dearly. Kathy enjoyed the company of her nieces and nephews on car trips to various destinations, including The Alamo, Tombstone, the set from Bonanza among many other fun places.

During Kathy’s years “living in the woods,” as her nieces and nephews called it, her sisters, as young adults, enjoyed her place as a summer get-away.

Kathy had diverse interests and passions. She was an avid lover of westerns, finding joy in the tales of the Old West. For multiple decades, Kathy was an ardent follower of the soap opera “General Hospital,” becoming deeply engrossed in the lives of its characters.

The memory of Kathy’s open ear and willingness to share her opinion will forever inspire, guide, and amuse her family. Her legacy of love, dedication, and an unyielding commitment to family, her diverse interests, and her love for the outdoors will live on in the hearts of those who had the privilege of knowing her.

The family is grateful for the support of Hospice of Humboldt. A private gathering was held to honor Kathy, per her request there will be no service.

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Curtis Lane Lindley — born on May 2, 1943 to Lynn Lindley and Rose Denzer in Willits. Passed away on December 21, 2023 surrounded by family and close family friend Kevin Horn.

A close friend said that he was a man in all things that mattered whether it was for his family, his community, or his country.

He was raised in Redway. He attended South Fork High School, where he was the senior class president. After high school he joined the U.S. Navy, serving in Vietnam. After discharge he returned to Humboldt County where he held various jobs until he became a dental technician working in Allen’s Dental Lab. He was asked to volunteer at the Fortuna High Football games with the ambulance and thus his over 25 years in the medical field began. He became an EMT and was among the first paramedics in Humboldt County. He taught CPR through the Red Cross and taught EMT, first aid/CPR at College of the Redwoods and all the local fire departments. After retirement he worked for Fortuna’s Best Western for ten years doing maintenance and helping at the front desk.

He was a member of VFW Post 2207. He was a member of the VFW Honor Guard.

In 1969, he joined the American Legion, where he held offices from local to National levels. While a member of Walker Bailey Post 205, he chaired various committees including Boys State for 25 years, sending numerous high school boys to Sacramento. He was in charge of school awards, recognizing outstanding eighth grade boys and girls.

He became a member of the Forty and Eight (honor society of the American Legion). He held most all offices, including Grande Chef de Gare (commander) of the State of California. He chaired the nursing scholarship program, awarding numerous scholarships.

He went to pay his dues at Rohnerville Grange and became the Grange Master for the next nine years.

He was the lieutenant governor for Kiwanis.

He coached T-Ball and umpired girl’s softball. I was active in the American Legion Baseball program, traveling with Odell Shelton to Yountville for the tournaments.

Yes, he was a man in all things that mattered, but what he loved most was his family: his wife of 62 years, Pat Lindley; his daughters Lori Cook (John) and Alynda Lindley (John), and son Robert (Bobby) Lindley; his grandchildren Carrie, Kent, Dylan, and Alex; his great-grandchildren Kaily, Lane, Paisley, Ellie, and Kenlie; his great-great-granddaughter Brinley; and his sisters Linda and Bonnie.

Preceding him: his father Lynwood Lindley, his mother Rosaline Denzer, his brother Larry Lindley, grandson Chris Cook, and his best friend and grandson Kyle Murray Lindley.

We will be having a celebration of his life at The Fortuna Veterans Memorial Building on Jan 13 at 11 a.m., with military honor guard. He touched a lot of lives, please come and share your memories with us.

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Yesterday we reported on the birth of Maple Samuels, the first newborn of 2024 at Providence-St. Joseph Hospital in Eureka. 

Today we welcome another newcomer: Say hello to Asaias Pimentel Gonzalez, the first 2024 baby to be born at Mad River Community Hospital’s Trillium Birth Suites.

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Here’s the press release from Mad River Community Hospital:

It is with great pride that Mad River Community Hospital’s (MRCH) Birth Center welcomes its first baby born of the 2024 New Year into its Trillium Birth Suites and into our community.  While every family and birth is unique and special, we at MRCH mark this changing of the calendar year milestone by welcoming the first baby of the New Year with a little something extra.

Congratulations to Gonzalez Herrera [and] Alondra Yuliana on the birth of their son, Asaias Pimentel Gonzalez.  He was born on January 1, 2024 at 9:49 p.m., weighing in at 6 pounds, 14 ounces and 20 inches long.

MRCH Staff, the Volunteer Gift Shop, and community members took this opportunity to donate gifts to welcome the First Baby born in the New Year at MRCH Trillium Birth Suites. Baby Shower gifts, supplies and handmade items were presented as a token of esteem in celebration to the Gonzalez family.

PREVIOUSLY:

• Firefighters Located Human Remains in the Palco Marsh Monday; Eureka Police Investigating

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Press release from the Eureka Police Department:

The Eureka Police Department has concluded its investigation into the human remains located at an extinguished fire on October 23, 2023, which occurred to the rear of the Bayshore Mall.

The decedent has been identified as twenty-seven-year-old Richard George Shannon. The identification was made with the assistance of a witness who had seen Shannon at the encampment prior to the fire, as well as DNA results received during the investigation.

The investigation revealed that Shannon was witnessed using fentanyl at the encampment earlier in the evening and was exhibiting signs of an overdose. Fentanyl was confirmed in Shannon’s system through a toxicology report conducted as a part of the autopsy. It appears the warming fire Shannon had built spread and ignited a fiberglass truck canopy that he was using as a make shift shelter. It is suspected that Shannon was unconscious or suffering from a drug overdose and was unable to extract himself from his shelter or the fire.

There were no signs of foul play located at the encampment, as well as no evidence that indicated Shannon had been deceased and moved to this location. Due to the high heat level generated by the fire and the damage caused to Shannon’s person, the cause of death has been listed as undetermined by the Coroner’s Office.

Press release from the Eureka Police Department:

On Tuesday, January 2 at approximately  8 p.m., a Eureka Police Department K-9 Officer on his way to work in his patrol vehicle was involved in a collision. The Officer was traveling northbound on I St approaching the intersection of 7th St. The traffic light on I St was green, permitting northbound traffic to pass through the intersection. As the Officer was passing through the intersection a vehicle entered the intersection through a red light and collided with the driver’s side of the patrol vehicle. Both vehicles sustained moderate-major collision damage and came to rest in the roadway.

The driver refused medical attention. The Officer was transported to the hospital for treatment. The Officers’ K-9 partner Odin, was transported to the vet for evaluation and was later released to his handler. The Officer and K-9 are both doing well.

Since the collision involved an EPD patrol vehicle CHP was contacted and a CHP Officer responded to investigate the collision.

Humboldt County Sheriff’s Office press release:

The Humboldt County Sheriff’s Office needs the public’s help to locate missing person Zoe Penrod, 39, of Myers Flat. Penrod is believed to be missing under unknown circumstances and may suffer from a medical condition that could put her at increased risk.

Penrod was reported missing by her fiancé on 01/01/2024 at about 9 a.m. after she is believed to have walked away from her residence in Myers Flat the previous day. HCSO Deputies have searched Myers Flat and the surrounding area and, along with the efforts of friends and family, have been unable to locate Zoe or confirm any possible reported sightings.

Zoe Penrod is white female adult, approximately 5’5” tall, and weighing around 140 pounds. Penrod has shoulder length, auburn colored hair and green eyes. Penrod was last seen wearing a floral print dress and green shoes.

Anyone with information for the Sheriff’s Office regarding Zoe’s possible whereabouts should call the Humboldt County Sheriff’s Office at (707) 445-7251.